Why Does a Business Need Accounting and Bookkeeping Services?
Keeping track of the financial information of the business will help in making informed decisions. Such information is required by management, regulators, and investors. Also, it is a legal requirement for any company to maintain books of accounts and ensure payment of relevant taxes and make tax filings. Unfortunately, many business owners do not have the time and necessary skills to keep a record of the business finances. Such companies use outsourcing services to maintain their accounts. A well-organized accounting service ensures that your business runs more efficiently on a daily basis.
Goods and Services Tax (GST) in Australia
GST plays a major role in Australian tax system. It is a broad-based tax of 10% levied on most of the goods, services, and other items sold and consumed in Australia. You are required to register for GST in Australia if:
- Your business has a GST turnover of $75,000 or more, or
- If you are a non-profit organization- $150,000 per year or more
You are required to have an Australian Business Number (ABN) to register for GST. Your ABN is part of the GST system and your ABN will be used as your GST registration number. If your business doesn't fit into one of the above categories, you don’t have to register for GST.
Pay As You Go (PAYG)
Businessmen starting a business in Australia often ask about PAYG and how it affects the business. It is an acronym used for two different processes systemized by the Australian Tax Office (ATO) for businesses in Australia. It includes:
1. PAYG Installments
It is a system for making regular payment on installment basis towards your expected end of the year tax liability. PAYG installments are reported and paid on your Business Activity Statements (BAS). As an individual (including if you're in business as a sole trader), you can view, lodge, pay, vary and manage all your PAYG installment obligations online if you have a myGov account linked to the ATO. Or it can be also handled by the agent if your company has appointed one.
2. PAYG Withholding
Under this, as an employer you are duty-bound to pay your employee or contractor’s income tax obligations on their behalf. You do this by collecting the PAYG withholding amounts from payments you make to employees, contractors, and businesses that do not have Australian Business Number.
Business Activity Statement (BAS)
It is a pre-printed document issued by the Australian Taxation Office (ATO) either on a monthly or quarterly basis. If your business is registered for GST then you need to lodge a Business Activity Statement. BAS will summarize the amount of GST payable and receivable by you for a certain period. It includes activities which will help you report and pay
- Goods and Service Tax (GST)
- Pay As You Go installments (PAYG)
- PAYG withholding tax
- Other taxes
When you register for an Australian business number (ABN) and GST, a BAS will be sent to you when it is time to lodge.
Installment Activity Statement (IAS)
It is a form used by the taxpayers who are not registered under the GST in Australia. It is a pre-printed document issued by the Australian Taxation Office (ATO) every month. If you own a business or are individual that deals with PAYG installments, PAYG withholding, and/or Fringe Benefit tax installments, and you aren’t registered for the GST you will need to lodge IAS’s. The Australian Taxation Office will send your IAS documents well ahead of the completion deadline so you need not worry about remembering the dates.
You can outsource services like IAS and BAS, and the agents or tax accountants can lodge, vary, and pay on your behalf through their preferred electronic channel.
- Report GST, PAYG Withholding, PAYG Installments( ‘PAYGI’), and FBT Installments to the ATO
- The ATO must receive forms on either a monthly or quarterly basis depending on the taxpayer
- The forms are submitted by the employer to the ATO (or their nominated in country accountant) (A payroll vendor would not submit these forms as they contain non-payroll related information)
- The client is required to sign the form
Our Accounting and Bookkeeping Services in Australia
Business Setup Worldwide provides the following small business accounting and bookkeeping services in Australia:
- Bank Reconciliation & Preparation of all accounts at any given balance date
- Profit & Loss, Balance Sheet, and other accounting reports
- Accounts payable - Supplier invoices processing, maintenance, reconciliations, and payment
- Accounts receivable - Invoice generation, maintenance and reconciliations
- Bank and credit card reconciliations
- Debtors and creditors reporting
- Generate profit and loss statement monthly and/or annually that reports the earnings of a business by stating all relevant income and all expenses that have been incurred to generate that income
Benefits of Availing Accounting and Bookkeeping Services
The benefits that you will derive after opting for Business Setup Worldwide accounting and bookkeeping services are:
1. Updated Financial Information
Keeping financial records up-to-date is crucial for any business. And availing accounting and bookkeeping services will help a business owner see how the business is doing financially by getting convenient access to all the kinds of information like pay-roll, outstanding bill, income information and more.
2. Time and Cost Savings
By getting professional help for financial services will help you maximize your returns as by freeing up your valuable time you can concentrate on growing the business. You can spend more energy on improving your business and of course, saving cost at the same time.
3. Protection Against Malpractices
Business malpractices like embezzlement and record tampering will be checked and curbed, bouncing of cheques can be anticipated and avoided and it can be ensured whether you have sufficient funds for handling payment.
Who We Are
Business Setup Worldwide is a platform to help you start your company. We facilitate the setup of your business through services like company registration, accounting, bookkeeping, intellectual property protection, etc.
Whether it’s for business or individual purposes, our Bookkeeping, and Accounting team will ensure that you are able to focus on your financial goals without any unnecessary confusion. We specialize in providing accurate, simple and cost-effective solutions for your accounts. We take pride in our ability to adapt to the market and devise innovative strategies to aid firms with their vision.
Business Setup Worldwide’s proprietary business design techniques, combined with its specialized industry knowledge and global reach, enable companies to anticipate changes in customer priorities and the competitive environment, and then design their businesses and improve operations to seize opportunities created by those changes.
At Business Setup Worldwide, we will provide accounting advisory services that will free you to focus on the operational side of the business. Our services will help you understand the financial health of your business and will give you peace of mind when making financial decisions. We have a highly talented and skilled team of accounting specialists onboard, capable of handling any kind of accounting requests from the clients, including the complex ones. They act as a guide and help you to understand the international financial norms and to carry out your business in a foreign land. So, you concentrate on growing your business and let us handle the financial issues.